Christian Davis discussed with Bloomberg about proposed legislation aimed at fortifying the Committee on Foreign Investment in the United States (CFIUS)
The Foreign Investment Bill, currently under consideration, gives expanded powers to the Committee on Foreign Investment in the United States (CFIUS). This bill, which focuses on foreign investments in critical U.S. technologies and infrastructure, is similar to the original bill proposed by the House.
The bill directs CFIUS to define foreign persons or countries for special scrutiny, a process that could result in a 'black list'. However, the specific countries that might be on this potential blacklist are not specified in the bill.
Christian Davis, an international trade partner at Gump, stated that a blacklist of countries is still possible under the compromise bill. He mentioned that CFIUS will have discretion to determine if a blacklist is necessary. Davis did not provide details on which countries could be on the potential blacklist.
Lawmakers and the administration have expressed concerns about investments from China, and the Foreign Investment Bill, if passed and signed into law, could lead to increased scrutiny of investments from China.
The House-Senate conference process had differences over the specification of countries as a key point. Despite these differences, the compromise bill retains the authority for CFIUS to review foreign investments in critical U.S. technologies and infrastructure.
CFIUS would be authorized to review more types of deals, including those involving foreign persons gaining access to critical U.S. technologies or infrastructure. The regulatory process for defining the 'black list' is part of the bill.
It's important to note that the bill does not specify which foreign persons or countries will be on the 'black list'. As such, the potential impact of the bill on foreign investments, particularly those from China, remains uncertain.
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